BEIJING, March 21, 2017 /PRNewswire/ -- Cheetah Mobile
Inc. (NYSE: CMCM) ("Cheetah Mobile" or the "Company"), a leading
mobile internet company that aims to provide leading apps for
mobile users worldwide and connect users with personalized content
on the mobile platform, today announced its unaudited consolidated
financial results for the fourth quarter and fiscal year ended
December 31, 2016.
Fourth Quarter 2016 Financial Highlights
- Total revenues increased by 10.9% year over year and
13.0% quarter over quarter to RMB1,274.7
million (US$183.6
million).
- Mobile revenues increased by 27.9% year over year and
15.0% quarter over quarter to RMB1,033.3
million (US$148.8 million).
Mobile revenues accounted for 81.1% of total revenues.
- Overseas revenues[1] increased by
31.3% year over year and 15.7% quarter over quarter to RMB832.6 million (US$119.9
million). Overseas revenues accounted for 65.3% of total
revenues.
- Net income attributable to Cheetah Mobile shareholders
was RMB58.8 million (US$8.5 million). Non-GAAP net income
attributable to Cheetah Mobile shareholders was RMB113.0 million (US$16.3
million).
- Net cash generated by operating activities
was RMB433.2 million (US$62.4
million).
Fourth Quarter 2016 Key Operating Metrics
- The number of global mobile
monthly active users ("Mobile
MAUs") was 623 million in December 2016. The number of
Mobile MAUs from overseas markets
accounted for 81.0% of the total number of Mobile MAUs in December 2016.
- The number of total global mobile user installations since the
Company's inception reached 3,810 million as of December 31, 2016.
Fiscal Year 2016 Financial Highlights
- Total revenues increased by 21.0% year over year to
RMB4,564.7 million (US$657.4 million).
- Mobile revenues increased by 42.7% year over year to
RMB3,530.4 million (US$508.5 million). Mobile revenues accounted for
77.3% of total revenues.
- Overseas revenues increased by 42.1% year over year to
RMB2,746.8 million (US$395.6 million). Overseas revenues accounted
for 60.2% of total revenues.
- Net loss attributable to Cheetah Mobile shareholders was
RMB80.5 million (US$11.6 million). Non-GAAP net income
attributable to Cheetah Mobile shareholders was RMB225.6 million (US$32.5
million).
- Net cash generated by operating activities was
RMB397.6 million (US$57.3 million).
Mr. Sheng Fu, Cheetah Mobile's
Chief Executive Officer, stated, "We ended 2016 on a solid note
with revenues beating the high-end of our guidance. We
implemented a number of strategic initiatives in 2016, particularly
in our content strategy, to counter the headwinds our business
faced early in the year. We are pleased that the steady and
sustained revenue growth generated by our utility apps helped to
continue to drive our revenue and profit growth sequentially in the
second half of 2016. As Cheetah's profit center, our mobile
utility apps have continued to expand its profitability, which in
turn supported our mobile content strategy. Product-wise, we
remained the third largest publisher of non-game mobile
applications in Google Play Worldwide in February 2017, according to App Annie. Two of our content-driven apps,
Live.me and News Republic, demonstrated strong growth, particularly
in the U.S. market. According to App
Annie, Live.me has become the No.1 grossing social
application in the U.S. on Google Play since August 2016, and remains one of the top 5 social
apps in the Apple App Store. In addition, News Republic has
been the No. 1 news app in the U.S on Google Play since December
2016. As our mobile utility
apps enter its mature growth stage,
our investments in content-driven products established a solid
foundation for another round of strong growth in the coming
quarters. Looking ahead, we remain focused on connecting our
over 600 million global Mobile MAUs with more personalized and
richer content by capitalizing on emerging artificial intelligence
technologies."
Mr. Andy Yeung, Cheetah Mobile's
Chief Financial Officer, commented, "We are pleased to have
delivered solid financial results in the fourth quarter of
2016. Driven by the steady and sustained revenue growth
generated by our utility apps, our total revenues, mobile revenues
and overseas revenues all hit record highs in the past
quarter. Additionally, we continued to improve our
profitability sequentially in the fourth quarter of 2016 despite
stepped-up investments in our content-driven applications.
Importantly, we again generated very strong free cash flow for both
the fourth quarter and the full year of 2016. These solid
achievements demonstrated that we delivered results for the
promises we set in the second quarter of 2016 to rejuvenate revenue
growth and improve our financial condition. Going forward, we
remain focused on executing on our content strategy to establish a
sustainable and profitable business model for the long term.
We are confident that by doing so, we will be well-positioned to
achieve another round of strong growth and deliver additional value
to all of our shareholders."
Fourth Quarter 2016 Consolidated Financial Results
REVENUES
Total revenues increased by 10.9% year over year and 13.0%
quarter over quarter to RMB1,274.7
million (US$183.6 million) in
the fourth quarter of 2016, which was primarily driven by the
steady and sustained revenue growth from the Company's utility apps
and the contribution from the Company's new content-driven apps,
namely Live.me and News Republic.
- Revenues from online marketing services remained stable
year over year and increased by 4.7% quarter over quarter to
RMB1,033.1 million (US$148.8 million) in the fourth quarter of
2016. Mobile advertising revenues represented approximately
84% of online marketing revenues in the quarter, as compared with
approximately 74% in the prior year period and approximately 82% in
the previous quarter. The increase in mobile advertising
revenues was driven by higher demand from advertisers and
monetization of light causal games through in-game
advertising.
- Revenues from internet value added services ("IVAS")
increased by 133.6% year over year and 88.9% quarter over quarter
to RMB208.7 million (US$30.1 million) in the fourth quarter of 2016,
which was primarily driven by the ramp-up in monetization of
Live.me in overseas markets.
- Revenues from internet security services and others
increased by 36.4% year over year and 4.5% quarter over quarter to
RMB32.9 million (US$4.7 million) in the fourth quarter of
2016. The year-over-year increase was primarily driven by
higher internet software licensing revenues.
By platform, revenues generated from mobile business
increased by 27.9% year over year and 15.0% quarter over quarter to
RMB1,033.3 million (US$148.8 million) in the fourth quarter of 2016,
which was primarily driven by increased popularity of the Company's
mobile marketing services worldwide and the initial monetization of
Live.me in overseas markets.
By region, revenues generated from overseas markets
increased by 31.3% year over year and 15.7% quarter over quarter to
RMB832.6 million (US$119.9 million) in the fourth quarter of 2016,
which was primarily driven by an improvement in overseas
monetization.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 57.3% year over year and
14.9% quarter over quarter to RMB464.2
million (US$66.9 million) in
the fourth quarter of 2016, which was primarily driven by increased
investments in content for the Company's content-driven apps,
higher bandwidth and internet data center costs associated with
increased user traffic worldwide, and data analytics.
Gross profit decreased by 5.1% year over year, but
increased by 11.9% quarter over quarter to RMB810.5 million (US$116.7
million) in the fourth quarter of 2016.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses decreased by 3.4% year over year
and 1.3% quarter over quarter to RMB748.3
million (US$107.8 million) in
the fourth quarter of 2016. Total non-GAAP operating
expenses increased by 3.0% year over year and 1.2% quarter over
quarter to RMB694.9 million
(US$100.1 million).
- Research and development expenses increased by 11.9%
year over year and decreased by 0.1% quarter over quarter to
RMB235.4 million (US$33.9 million) in the fourth quarter of
2016. The year-over-year increase was primarily driven by
increased personnel costs associated with the Company's increased
investments in big data analytics and new product development,
particularly the development of new content-driven mobile
applications and services. The quarter-over-quarter decrease
was primarily due to a decrease in share-based compensation
expenses. Non-GAAP research and development expenses,
which exclude share-based compensation expenses, increased by 31.5%
year over year and 6.5% quarter over quarter to RMB212.6 million (US$30.6
million).
- Selling and marketing expenses decreased by 20.5% year
over year, but increased by 4.2% quarter over quarter to
RMB408.1 million (US$58.8 million) in the fourth quarter of
2016. The year-over-year decrease was due to lower expenses
on promotional activities as a result of the Company's strategy to
implement cost control for its utility apps, which was partially
offset by increased product promotional activities for the
Company's content-driven apps and an increase in direct sales
personnel headcount. The quarter-over-quarter increase was
primarily due to increased promotional activities for mobile
products in the fourth quarter of 2016. Non-GAAP selling
and marketing expenses, which exclude share-based compensation
expenses, decreased by 19.6% year over year, but increased by 6.0%
quarter over quarter to RMB408.1
million (US$58.8
million).
- General and administrative expenses increased by 28.6%
year over year and decreased by 10.1% quarter over quarter to
RMB126.8 million (US$18.3 million) in the fourth quarter of
2016. The year-over-year increase was primarily driven by
higher professional service fee and an increase in expenses
associated with increased headcount for the general and
administration function. The quarter-over-quarter decrease
was primarily driven by lower professional service fees.
Non-GAAP general and administrative expenses, which exclude
share-based compensation expenses, increased by 81.7% year over
year and decreased by 13.9% quarter over quarter to RMB96.2 million (US$13.9
million).
Operating profit was RMB62.2
million (US$9.0 million), as
compared with an operating profit of RMB79.8
million in the prior year period and an operating loss of
RMB33.8 million in the previous
quarter. The year-over-year decline in operating profit was
mainly attributable to increased investments in content-driven
apps. The quarter-over-quarter improvement was due to higher
total revenues in the quarter as well as the Company's improved
efficiency and cost control measures.
Non-GAAP operating profit decreased by 34.7% year over
year, but increased by 205.4% quarter over quarter to RMB116.4 million (US$16.8
million) in the fourth quarter of 2016.
Share-based compensation expenses decreased by 45.0% year
over year and 24.7% quarter over quarter to RMB54.2 million (US$7.8
million) in the fourth quarter of 2016. The decrease
was mainly due to the change in the
estimated forfeiture rates of share-based compensation.
OTHER EXPENSES
The Company recognized impairment losses of long-term
investments of RMB45.9 million
(US$6.6 million) in the fourth
quarter of 2016, primarily driven by one-time non-cash write-downs
of certain investment assets, which the Company considered
other-than-temporary, to their fair value. These write-downs
were due to the underperformance and financial positions of the
Company's investees.
OTHER INCOME, NET
Other income, net was RMB38.7
million (US$5.6 million) in
the fourth quarter of 2016, which was primarily due to gains on
disposal of certain investment assets in the fourth quarter of
2016.
NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net income attributable to Cheetah Mobile shareholders
increased by 3.7% year over year and 13,107.9% quarter over quarter
to RMB58.8 million (US$8.5 million) in the fourth quarter of
2016.
Non-GAAP net income attributable to Cheetah Mobile
shareholders decreased by 27.2% year over year, but increased
by 56.1% quarter over quarter to RMB113.0
million (US$16.3 million).
NET INCOME PER ADS
Diluted income per ADS in the fourth quarter of 2016 was
RMB0.41 (US$0.06), as compared with RMB0.40 in the prior year period and RMB0.00 in the previous quarter.
Non-GAAP diluted income per ADS in the fourth quarter of
2016 was RMB0.80 (US$0.12), as compared with RMB1.08 in the prior year period and RMB0.51 in the previous quarter.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) decreased by 26.7% year over
year, but increased by 98.1% quarter over quarter to RMB158.6 million (US$22.8
million) in the fourth quarter of 2016.
CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM
INVESTMENTS BALANCE
As of December 31, 2016, the
Company had cash and cash equivalents, restricted cash and
short-term investments of RMB1,940.3
million (US$279.5
million).
SHARES ISSUED AND OUTSTANDING
As of December 31, 2016, the
Company had a total of 1,425,736,715 Class A and Class B ordinary
shares issued and outstanding. One ADS represents 10 Class A
ordinary shares.
Fiscal Year 2016 Results
REVENUES
Total revenues increased by 21.0% year over year to RMB4,564.7 million (US$657.4 million) in 2016, which was primarily
driven by the steady and sustained revenue growth from the
Company's utility apps and the contribution from the Company's new
content-driven apps.
- Revenues from online marketing services increased by
20.3% year over year to RMB3,950.9
million (US$569.0 million) in
2016. Mobile advertising revenues represented approximately
80% of online marketing revenues in 2016, as compared with
approximately 69% in 2015. The increase in mobile advertising
revenues was driven by higher demand from advertisers and
monetization of light causal games through in-game
advertising.
- Revenues from internet value added services ("IVAS")
increased by 26.7% year over year to RMB501.0 million (US$72.2
million) in 2016, which was primarily driven by the initial
monetization of Live.me in overseas markets.
- Revenues from internet security services and others
increased by 18.5% year over year to RMB112.8 million (US$16.2
million) in 2016, which was primarily driven by higher
internet software licensing revenues.
By platform, revenues generated from mobile business
increased by 42.7% year over year to RMB3,530.4 million (US$508.5 million) in 2016, which was primarily
driven by increased popularity of the Company's mobile marketing
services worldwide and the initial monetization of Live.me in
overseas markets.
By region, revenues generated from overseas markets
increased by 42.1% year over year to RMB2,746.8 million (US$395.6 million) in 2016, which was primarily
driven by an improvement in overseas monetization.
COST OF REVENUES AND GROSS PROFIT
Cost of revenues increased by 61.4% year over year to
RMB1,543.8 million (US$222.4 million) in 2016, which was primarily
driven by increased investments in content for the Company's
content-driven apps, higher bandwidth and internet data center
costs associated with increased user traffic worldwide, and data
analytics.
Gross profit increased by 7.2% year over year to
RMB3,020.8 million (US$435.1 million) in 2016.
OPERATING INCOME/LOSS AND EXPENSES
Total operating expenses increased by 16.6% year over
year to RMB3,033.3 million
(US$436.9 million) in 2016.
Total non-GAAP operating expenses increased by 19.3% year
over year to RMB2,728.6 million
(US$393.0 million).
- Research and development expenses increased by 30.3%
year over year to RMB905.9 million
(US$130.5 million) in 2016, which was
primarily driven by an increase in personnel-related costs
associated with the Company's increased investments in big data
analytics and new product development, particularly the development
of new content-driven mobile applications and services.
Non-GAAP research and development expenses, which exclude
share-based compensation expenses, increased by 37.2% year over
year to RMB757.6 million
(US$109.1 million).
- Selling and marketing expenses increased by 9.6% year
over year to RMB1,650.6 million
(US$237.7 million) in 2016, primarily
due to increased product promotional activities for the Company's
content-driven apps, which was partially offset by reduced spending
on product activities for utility apps. Non-GAAP selling
and marketing expenses, which exclude share-based compensation
expenses, increased by 10.0% year over year to RMB1,636.8 million (US$235.7 million).
- General and administrative expenses increased by 25.4%
year over year to RMB561.8 million
(US$80.9 million) in 2016, which was
primarily driven by higher professional service fee and an increase
in expenses associated with increased headcount for the general and
administration function. Non-GAAP general and
administrative expenses, which exclude share-based compensation
expenses, increased by 42.2% year over year to RMB419.2 million (US$60.4
million).
Operating loss was RMB12.4
million (US$1.8 million) in
2016, as compared with an operating income of RMB216.9 million in 2015. This change was
mainly attributable to increased investments in the Company's
content-driven apps.
Non-GAAP operating profit decreased by 44.9% year over
year to RMB293.7 million
(US$42.3 million) in 2016.
Share-based compensation expenses decreased by 3.0% year
over year to RMB306.1 million
(US$44.1 million) in 2016.
NET INCOME/LOSS ATTRIBUTABLE TO CHEETAH MOBILE
SHAREHOLDERS
Net loss attributable to Cheetah Mobile shareholders was
RMB80.5 million (US$11.6 million) in 2016, as compared with a net
income attributable to Cheetah Mobile shareholders of RMB176.3 million in 2015.
Non-GAAP net income attributable to Cheetah Mobile
shareholders decreased by 54.1% year over year to RMB225.6 million (US$32.5
million) in 2016.
NET INCOME/LOSS PER ADS
Diluted loss per ADS in 2016 was RMB0.58 (US$0.08),
as compared with diluted income per ADS of RMB1.24 in 2015.
Non-GAAP diluted income per ADS in 2016 was RMB1.59 (US$0.23),
as compared with RMB3.45 in 2015.
ADJUSTED EBITDA
Adjusted EBITDA (Non-GAAP) decreased by 32.7% year over
year to RMB457.1 million
(US$65.8 million) in 2016.
Recent Development
Cheetah Mobile today announced that Mr. Ka Wai Andy Yeung has resigned as Chief
Financial Officer of the Company, effective March 31, 2017, to pursue other opportunities.
Mr. Yeung has no disagreement with the Company that led to
his resignation. Pending the appointment of Mr. Yeung's
successor, the Company's Board of Directors has appointed Mr.
Yuk Keung Francis Ng, a director and
the Chief Financial Officer of Kingsoft, as the interim Chief
Financial Officer of the Company. Mr.
Yeung will remain as an external advisor to the Company to
facilitate a smooth transition.
Update on Share Repurchase Program
On March 16, 2016, the Company's
Board of Directors authorized a share repurchase plan, pursuant to
which the Company may repurchase its own issued and outstanding
ADSs with an aggregate value of up to US$100
million from the open market, in negotiated transactions off
the market, or through other legally permissible means in
accordance with applicable securities laws from time to time within
one year after March 16, 2016.
The share repurchase plan does not require the Company to acquire a
specific number of ADSs. During the one-year period, the
Company repurchased a total of 2,536,808 ADSs, representing
25,368,080 Class A ordinary shares, at an average price of
$10.7483 per ADS. The share
repurchase program has expired on March
16, 2017.
Business Outlook
For the first quarter of 2017, the Company expects its total
revenues to be between RMB1,150
million (US$166 million) and
RMB1,190 million (US$171 million), representing a year-over-year
increase of 3% to 7% and quarter-over-quarter decrease of 7% to
10%. This estimate represents management's preliminary view
as of the date of this release, which is subject to change.
Conference Call Information
Company will hold a conference call on Monday, March 21, 2017 at 8:00 a.m. Eastern Time or 8:00 p.m. Beijing Time to discuss the financial
results. Listeners may access the call by dialing the
following numbers:
International:
|
+1-412-902-4272
|
United States Toll
Free:
|
+1-888-346-8982
|
China Toll
Free:
|
4001-201203
|
Hong Kong Toll
Free:
|
800-905945
|
Conference
ID:
|
Cheetah
Mobile
|
A live and archived webcast of the conference call will also be
available at the Company's investor relations website at
http://ir.cmcm.com/.
Exchange Rate
This press release contains translations of certain Renminbi
amounts into U.S. dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all
translations from Renminbi to U.S. dollars in this press release
were made at a rate of RMB6.9430 to
US$1.00, the exchange rate in effect
as of December 31, 2016 as set forth
in the H. 10 statistical release of the Federal Reserve
Board. Such translations should not be construed as
representations that RMB amounts could be converted into U.S.
dollars at that rate or any other rate, or to be the amounts that
would have been reported under accounting principles generally
accepted in the United States of
America ("U.S. GAAP").
About Cheetah Mobile Inc.
Cheetah Mobile is a leading mobile internet company. It
aims to provide leading apps for mobile users worldwide and connect
users with personalized content on the mobile platform.
Cheetah Mobile's products, including its popular
mission-critical utility applications Clean Master, CM Security and
Battery Doctor, help make users' mobile internet experience
smarter, speedier, and safer. The Company has attracted 623 million
global Mobile MAUs as of December
2016, of which approximately 81% are located outside of
China. Leveraging the success of its mission-critical
applications, Cheetah Mobile has launched its line of mobile
content-driven applications, including News Republic and
Live.me.
Cheetah Mobile provides its advertising customers, which include
direct advertisers and mobile advertising networks through which
advertisers place their advertisements, with direct access to
highly targeted mobile users and global promotional channels, which
are capable of delivering targeted content to hundreds of millions
of users.
Safe Harbor Statement
This press release contains forward-looking statements.
These statements, including management quotes and business outlook,
constitute forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Such statements
involve inherent risks and uncertainties. A number of factors
could cause actual results to differ materially from those
contained in the forward-looking statements, including but are not
limited to the following: Cheetah Mobile's growth strategies;
Cheetah Mobile's ability to retain and increase its user base and
expand its product and service offerings; Cheetah Mobile's ability
to monetize its platform; Cheetah Mobile's future business
development, financial condition and results of operations;
competition with companies in a number of industries including
internet companies that provide online marketing services and
internet value-added services; expected changes in Cheetah Mobile's
revenues and certain cost or expense items; and general economic
and business condition globally and in China. Further information regarding
these and other risks is included in Cheetah Mobile's filings with
the U.S. Securities and Exchange Commission. Cheetah Mobile
does not undertake any obligation to update any forward-looking
statement as a result of new information, future events or
otherwise, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement Cheetah Mobile's consolidated financial
information presented in accordance with U.S. GAAP, Cheetah Mobile
uses the following non-GAAP financial measures:
- Non-GAAP operating expenses reflect operating expenses
excluding share-based compensation expenses.
- Non-GAAP operating profit reflects operating profit excluding
share-based compensation expenses.
- Non-GAAP net income attributable to Cheetah Mobile shareholders
is net income attributable to Cheetah Mobile shareholders excluding
share-based compensation expenses.
- Non-GAAP diluted earnings (loss) per ADS is non-GAAP net income
(loss) attributable to Cheetah Mobile shareholders divided by
weighted average number of diluted ADSs.
- Adjusted EBITDA is earnings before interest, taxes,
depreciation, amortization, other non-operating income and
share-based compensation expenses.
The Company believes that separate analysis and exclusion of
share-based compensation expenses and the use of Adjusted EBITDA
add clarity to the constituent parts of its performance from the
cash perspective. The Company reviews these non-GAAP
financial measures together with GAAP financial measures to obtain
a better understanding of its operating performance. It uses
the non-GAAP financial measures for planning, forecasting and
measuring results against the forecast. The Company believes
that non-GAAP financial measures are useful supplemental
information for investors and analysts to assess its operating
performance without the effect of share-based compensation
expenses, which have been and will continue to be significant
recurring expenses in its business. However, the use of
non-GAAP financial measures has material limitations as an
analytical tool. One of the limitations of using non-GAAP
financial measures is that they do not include all items that
impact the Company's net income for the period. In addition,
because non-GAAP financial measures are not measured in the same
manner by all companies, they may not be comparable to other
similarly titled measures used by other companies. In light
of the foregoing limitations, you should not consider non-GAAP
financial measure in isolation from or as an alternative to the
financial measure prepared in accordance with U.S. GAAP. For
more information on these non-GAAP financial measures, please see
the tables captioned "Cheetah Mobile Inc. Reconciliations of
GAAP and Non-GAAP Results" and "Cheetah Mobile Inc. Reconciliation
of Net Income (Loss) Attributable to Cheetah Mobile Shareholders to
Adjusted EBITDA (Non-GAAP)" at the end of this release.
Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: IR@cmcm.com
ICR, Inc.
Jessie Fan
Tel: +1 (646) 417-5395
Email: IR@cmcm.com
[1]
Overseas revenues refer to revenues generated by the Company's
operating legal entities incorporated outside the People's Republic of China (excluding
Hong Kong, Macau and Taiwan for the purposes of this press
release), or the PRC. Such revenues are primarily
attributable to customers located outside the
PRC.
CHEETAH MOBILE
INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars
("US$")
|
|
|
As
of
|
|
31-Dec-15
|
|
31-Dec-16
|
|
31-Dec-16
|
|
RMB
|
|
RMB
|
|
USD
|
|
(As
adjusted) (a)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,843,233
|
|
1,411,000
|
|
203,226
|
Restricted
cash
|
156,161
|
|
167,751
|
|
24,161
|
Short-term
investments
|
29,234
|
|
361,499
|
|
52,067
|
Accounts
receivable
|
633,440
|
|
600,885
|
|
86,545
|
Prepayments and other
current assets
|
360,004
|
|
571,306
|
|
82,285
|
Due from related
parities
|
60,794
|
|
44,278
|
|
6,377
|
Deferred tax
assets
|
5,101
|
|
15,527
|
|
2,236
|
Total current
assets
|
3,087,967
|
|
3,172,246
|
|
456,897
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
121,241
|
|
117,439
|
|
16,915
|
Intangible assets,
net
|
233,092
|
|
227,251
|
|
32,731
|
Goodwill
|
617,863
|
|
943,922
|
|
135,953
|
Investment in equity investees
|
124,708
|
|
100,063
|
|
14,412
|
Other long term investments
|
700,113
|
|
877,094
|
|
126,328
|
Deferred tax
assets
|
12,843
|
|
74,809
|
|
10,775
|
Other non-current
assets
|
28,724
|
|
28,310
|
|
4,077
|
Total non-current
assets
|
1,838,584
|
|
2,368,888
|
|
341,191
|
|
|
|
|
|
|
Total
assets
|
4,926,551
|
|
5,541,134
|
|
798,088
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank loans
|
130,273
|
|
379,544
|
|
54,666
|
Accounts
payable
|
137,883
|
|
194,882
|
|
28,069
|
Accrued expenses and
other current liabilities
|
1,308,717
|
|
1,359,106
|
|
195,752
|
Redemption right
liabilities
|
474
|
|
652
|
|
94
|
Deferred
revenue
|
56,070
|
|
48,661
|
|
7,009
|
Due to related
parties
|
56,932
|
|
71,167
|
|
10,250
|
Income tax
payable
|
29,822
|
|
19,403
|
|
2,795
|
Deferred tax
liabilities
|
414
|
|
-
|
|
-
|
Total current
liabilities
|
1,720,585
|
|
2,073,415
|
|
298,635
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Bank loans
|
10,523
|
|
118,797
|
|
17,110
|
Deferred
revenue
|
8,166
|
|
6,001
|
|
864
|
Deferred tax
liabilities
|
99,006
|
|
112,438
|
|
16,194
|
Other non-current
liabilities
|
73,826
|
|
29,305
|
|
4,221
|
Total non-current
liabilities
|
191,521
|
|
266,541
|
|
38,389
|
|
|
|
|
|
|
Total
liabilities
|
1,912,106
|
|
2,339,956
|
|
337,024
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Ordinary
shares
|
226
|
|
230
|
|
33
|
Treasury
stock
|
-
|
|
(178,991)
|
|
(25,780)
|
Additional paid-in
capital
|
2,414,706
|
|
2,723,474
|
|
392,262
|
Retained
earnings
|
317,818
|
|
237,293
|
|
34,177
|
Accumulated other
comprehensive income
|
121,317
|
|
230,346
|
|
33,175
|
Total Cheetah
Mobile shareholders' equity
|
2,854,067
|
|
3,012,352
|
|
433,867
|
Noncontrolling
interests
|
160,378
|
|
188,826
|
|
27,197
|
Total
equity
|
3,014,445
|
|
3,201,178
|
|
461,064
|
|
|
|
|
|
|
Total liabilities,
noncontrolling interests and shareholders' equity
|
4,926,551
|
|
5,541,134
|
|
798,088
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
(a) The above
condensed consolidated balance sheets have been prepared as if the
Kingsoft Japan had been owned and operated by
Cheetah Mobile
throughout the periods presented in accordance with ASC 805-50.
Kingsoft Japan became a subsidiary of the
Company on January 29, 2016.
|
CHEETAH MOBILE
INC.
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for number of shares and per share(or ADS)
data)
|
|
|
For The Three
Months Ended
|
|
31-Dec-15
|
|
30-Sep-16
|
|
31-Dec-16
|
|
31-Dec-16
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
(As
adjusted) (b)
|
|
|
|
|
|
|
Revenues
|
1,149,546
|
|
1,128,326
|
|
1,274,672
|
|
183,591
|
Online marketing
services
|
1,036,091
|
|
986,379
|
|
1,033,103
|
|
148,798
|
Internet value-added
services
|
89,337
|
|
110,452
|
|
208,670
|
|
30,055
|
Internet security
services and others
|
24,118
|
|
31,495
|
|
32,899
|
|
4,738
|
|
|
|
|
|
|
|
|
Cost of revenues
(a)
|
(295,110)
|
|
(403,900)
|
|
(464,197)
|
|
(66,858)
|
Gross
profit
|
854,436
|
|
724,426
|
|
810,475
|
|
116,733
|
|
|
|
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
|
|
|
|
Research and
development (a)
|
(210,415)
|
|
(235,541)
|
|
(235,355)
|
|
(33,898)
|
Selling and marketing
(a)
|
(513,368)
|
|
(391,496)
|
|
(408,097)
|
|
(58,778)
|
General and
administrative (a)
|
(98,611)
|
|
(141,168)
|
|
(126,846)
|
|
(18,270)
|
Impairment of
goodwill and intangible assets
|
(12,525)
|
|
-
|
|
(539)
|
|
(78)
|
Other operating
income
|
60,273
|
|
9,938
|
|
22,545
|
|
3,247
|
Total operating
income and expenses
|
(774,646)
|
|
(758,267)
|
|
(748,292)
|
|
(107,777)
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
79,790
|
|
(33,841)
|
|
62,183
|
|
8,956
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest income,
net
|
2,815
|
|
727
|
|
954
|
|
137
|
Changes in fair value
of redemption right and put options granted
|
68
|
|
251
|
|
(57)
|
|
(8)
|
Settlement and
changes in fair value of contingent consideration
|
9,098
|
|
981
|
|
(3,011)
|
|
(434)
|
Foreign exchange
gain, net
|
1,470
|
|
1,672
|
|
2,951
|
|
425
|
Impairment of
investments
|
(8,837)
|
|
-
|
|
(45,863)
|
|
(6,606)
|
Gains (losses) from
equity method investments, net
|
4,390
|
|
(451)
|
|
2,889
|
|
416
|
Other (expense)
income, net
|
(136)
|
|
30,949
|
|
38,705
|
|
5,575
|
|
|
|
|
|
|
|
|
Income before
taxes
|
88,658
|
|
288
|
|
58,751
|
|
8,461
|
Income tax (expenses)
benefits
|
(31,954)
|
|
7,873
|
|
9,278
|
|
1,336
|
Net
income
|
56,704
|
|
8,161
|
|
68,029
|
|
9,797
|
Less: net income
attributable to noncontrolling interests
|
23
|
|
7,716
|
|
9,254
|
|
1,333
|
Net income
attributable to Cheetah Mobile shareholders
|
56,681
|
|
445
|
|
58,775
|
|
8,464
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
0.04
|
|
0.00
|
|
0.04
|
|
0.01
|
Diluted
|
0.04
|
|
0.00
|
|
0.04
|
|
0.01
|
|
|
|
|
|
|
|
|
Earnings per
ADS
|
|
|
|
|
|
|
|
Basic
|
0.41
|
|
0.00
|
|
0.42
|
|
0.06
|
Diluted
|
0.40
|
|
0.00
|
|
0.41
|
|
0.06
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
1,385,225,872
|
|
1,381,491,089
|
|
1,384,035,270
|
|
1,384,035,270
|
Diluted
|
1,434,672,741
|
|
1,417,898,001
|
|
1,419,820,902
|
|
1,419,820,902
|
Weighted average
number of ADSs used in computation
|
|
|
|
|
|
|
|
Basic
|
138,522,587
|
|
138,149,109
|
|
138,403,527
|
|
138,403,527
|
Diluted
|
143,467,274
|
|
141,789,800
|
|
141,982,090
|
|
141,982,090
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
41,018
|
|
12,347
|
|
72,411
|
|
10,429
|
Unrealized gains on
available-for-sale securities, net
|
3,219
|
|
-
|
|
415
|
|
60
|
Reclassification
adjustments for gains included in net income
|
-
|
|
(21,666)
|
|
-
|
|
-
|
Other
comprehensive income (loss)
|
44,237
|
|
(9,319)
|
|
72,826
|
|
10,489
|
Total
comprehensive income (loss)
|
100,941
|
|
(1,158)
|
|
140,855
|
|
20,286
|
Less: Total
comprehensive (loss) income attributable to
noncontrolling interests
|
(196)
|
|
8,522
|
|
6,941
|
|
1,000
|
Total
comprehensive income (loss) attributable to
Cheetah Mobile shareholders
|
101,137
|
|
(9,680)
|
|
133,914
|
|
19,286
|
|
|
|
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
|
|
|
|
Cost of
revenues
|
(1,623)
|
|
187
|
|
824
|
|
119
|
Research and
development
|
48,740
|
|
35,956
|
|
22,716
|
|
3,272
|
Selling and
marketing
|
5,725
|
|
6,352
|
|
34
|
|
5
|
General and
administrative
|
45,652
|
|
29,449
|
|
30,627
|
|
4,411
|
Total
|
98,494
|
|
71,944
|
|
54,201
|
|
7,807
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(b) The above
condensed consolidated statements of comprehensive income have been
prepared as if the Kingsoft Japan had been owned and operated
by
Cheetah Mobile
throughout the periods presented in accordance with ASC 805-50.
Kingsoft Japan became a subsidiary of the Company on January 29,
2016.
|
CHEETAH MOBILE
INC.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Unaudited, in '000,
except for per share data and percentage)
|
|
|
For The Three
Months Ended December 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
1,274,672
|
|
|
|
-
|
|
|
|
1,274,672
|
|
|
|
183,591
|
Cost of
revenues
|
(464,197)
|
|
36.4%
|
|
824
|
|
0.1%
|
|
(463,373)
|
|
36.4%
|
|
(66,740)
|
Gross
profit
|
810,475
|
|
63.6%
|
|
824
|
|
0.1%
|
|
811,299
|
|
63.6%
|
|
116,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(235,355)
|
|
18.5%
|
|
22,716
|
|
1.8%
|
|
(212,639)
|
|
16.7%
|
|
(30,626)
|
Selling and
marketing
|
(408,097)
|
|
32.0%
|
|
34
|
|
0.0%
|
|
(408,063)
|
|
32.0%
|
|
(58,773)
|
General and
administrative
|
(126,846)
|
|
10.0%
|
|
30,627
|
|
2.4%
|
|
(96,219)
|
|
7.5%
|
|
(13,858)
|
Impairment of
goodwill and intangible assets
|
(539)
|
|
0.0%
|
|
-
|
|
0.0%
|
|
(539)
|
|
0.0%
|
|
(78)
|
Other operating
income
|
22,545
|
|
1.8%
|
|
-
|
|
0.0%
|
|
22,545
|
|
1.8%
|
|
3,247
|
Total operating
income and expenses
|
(748,292)
|
|
58.7%
|
|
53,377
|
|
4.2%
|
|
(694,915)
|
|
54.5%
|
|
(100,088)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
62,183
|
|
4.9%
|
|
54,201
|
|
4.3%
|
|
116,384
|
|
9.1%
|
|
16,763
|
Net income
attributable to Cheetah Mobile shareholders
|
58,775
|
|
4.6%
|
|
54,201
|
|
4.3%
|
|
112,976
|
|
8.9%
|
|
16,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.04
|
|
|
|
0.04
|
|
|
|
0.08
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.41
|
|
|
|
0.39
|
|
|
|
0.80
|
|
|
|
|
Diluted earnings per
ADS (USD)
|
0.06
|
|
|
|
0.06
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended September 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,128,326
|
|
|
|
-
|
|
|
|
1,128,326
|
|
|
|
|
Cost of
revenues
|
(403,900)
|
|
35.8%
|
|
187
|
|
0.0%
|
|
(403,713)
|
|
35.8%
|
|
|
Gross
profit
|
724,426
|
|
64.2%
|
|
187
|
|
0.0%
|
|
724,613
|
|
64.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(235,541)
|
|
20.9%
|
|
35,956
|
|
3.2%
|
|
(199,585)
|
|
17.7%
|
|
|
Selling and
marketing
|
(391,496)
|
|
34.7%
|
|
6,352
|
|
0.6%
|
|
(385,144)
|
|
34.1%
|
|
|
General and
administrative
|
(141,168)
|
|
12.5%
|
|
29,449
|
|
2.6%
|
|
(111,719)
|
|
9.9%
|
|
|
Impairment of
goodwill and intangible assets
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
|
Other operating
income
|
9,938
|
|
0.9%
|
|
-
|
|
0.0%
|
|
9,938
|
|
0.9%
|
|
|
Total operating
income and expenses
|
(758,267)
|
|
67.2%
|
|
71,757
|
|
6.4%
|
|
(686,510)
|
|
60.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(33,841)
|
|
3.0%
|
|
71,944
|
|
6.4%
|
|
38,103
|
|
3.4%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
445
|
|
0.0%
|
|
71,944
|
|
6.4%
|
|
72,389
|
|
6.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.00
|
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.00
|
|
|
|
0.51
|
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three
Months Ended December 2015
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
1,149,546
|
|
|
|
|
|
|
|
1,149,546
|
|
|
|
|
Cost of
revenues
|
(295,110)
|
|
25.7%
|
|
(1,623)
|
|
0.1%
|
|
(296,733)
|
|
25.8%
|
|
|
Gross
profit
|
854,436
|
|
74.3%
|
|
(1,623)
|
|
0.1%
|
|
852,813
|
|
74.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(210,415)
|
|
18.3%
|
|
48,740
|
|
4.2%
|
|
(161,675)
|
|
14.1%
|
|
|
Selling and
marketing
|
(513,368)
|
|
44.7%
|
|
5,725
|
|
0.5%
|
|
(507,643)
|
|
44.2%
|
|
|
General and
administrative
|
(98,611)
|
|
8.6%
|
|
45,652
|
|
4.0%
|
|
(52,959)
|
|
4.6%
|
|
|
Impairment of
goodwill and intangible assets
|
(12,525)
|
|
1.1%
|
|
-
|
|
-
|
|
(12,525)
|
|
1.1%
|
|
|
Other operating
income
|
60,273
|
|
5.2%
|
|
-
|
|
-
|
|
60,273
|
|
5.2%
|
|
|
Total operating
income and expenses
|
(774,646)
|
|
67.4%
|
|
100,117
|
|
8.7%
|
|
(674,529)
|
|
58.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
79,790
|
|
6.9%
|
|
98,494
|
|
8.6%
|
|
178,284
|
|
15.5%
|
|
|
Net income
attributable to Cheetah Mobile Shareholders
|
56,681
|
|
4.9%
|
|
98,494
|
|
8.6%
|
|
155,175
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.04
|
|
|
|
0.07
|
|
|
|
0.11
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
0.40
|
|
|
|
0.68
|
|
|
|
1.08
|
|
|
|
|
CHEETAH MOBILE
INC.
|
Condensed
Consolidated Statements of Comprehensive Income
(Loss)
|
(Unaudited,
amounts in thousands of Renminbi ("RMB") and US dollars ("US$"),
except for number of
shares and per share (or ADS) data)
|
|
|
Year Ended
December 31
|
|
2015
|
2016
|
2016
|
|
RMB
|
RMB
|
USD
|
|
(As
adjusted) (b)
|
|
|
Revenues
|
3,773,877
|
4,564,650
|
657,446
|
Online marketing
services
|
3,283,423
|
3,950,886
|
569,045
|
Internet value-added
services
|
395,312
|
500,991
|
72,158
|
Internet security
services and others
|
95,142
|
112,773
|
16,243
|
|
|
|
|
Cost of revenues
(a)
|
(956,353)
|
(1,543,817)
|
(222,356)
|
Gross
profit
|
2,817,524
|
3,020,833
|
435,090
|
|
|
|
|
Operating income
and expenses:
|
|
|
|
Research and
development (a)
|
(695,185)
|
(905,854)
|
(130,470)
|
Selling and marketing
(a)
|
(1,505,951)
|
(1,650,581)
|
(237,733)
|
General and
administrative (a)
|
(447,984)
|
(561,834)
|
(80,921)
|
Impairment of
goodwill and intangible assets
|
(49,882)
|
(2,889)
|
(416)
|
Other operating
income
|
98,376
|
87,877
|
12,657
|
Total operating
income and expenses
|
(2,600,626)
|
(3,033,281)
|
(436,883)
|
|
|
|
|
Operating profit
(loss)
|
216,898
|
(12,448)
|
(1,793)
|
Other income
(expense):
|
|
|
|
Interest income,
net
|
14,550
|
7,783
|
1,121
|
Changes in fair value
of redemption right and put options granted
|
22
|
(94)
|
(14)
|
Settlement and
changes in fair value of contingent consideration
|
7,011
|
(3,377)
|
(486)
|
Foreign exchange
(loss) gain, net
|
(213)
|
3,747
|
540
|
Impairment of
investments
|
(34,728)
|
(141,069)
|
(20,318)
|
Losses from equity
method investments, net
|
(12,144)
|
(11,363)
|
(1,637)
|
Other income,
net
|
46,981
|
87,925
|
12,664
|
|
|
|
|
Income (Loss)
before taxes
|
238,377
|
(68,896)
|
(9,923)
|
Income tax (expenses)
benefits
|
(63,740)
|
12,189
|
1,756
|
Net income
(loss)
|
174,637
|
(56,707)
|
(8,167)
|
Less: net (loss)
income attributable to noncontrolling interests
|
(1,710)
|
23,818
|
3,431
|
Net income (loss)
attributable to Cheetah Mobile
shareholders
|
176,347
|
(80,525)
|
(11,598)
|
|
|
|
|
Earnings (Losses)
per share
|
|
|
|
Basic
|
0.13
|
(0.06)
|
(0.01)
|
Diluted
|
0.12
|
(0.06)
|
(0.01)
|
|
|
|
|
Earnings (Losses)
per ADS
|
|
|
|
Basic
|
1.28
|
(0.58)
|
(0.08)
|
Diluted
|
1.24
|
(0.58)
|
(0.08)
|
|
|
|
|
Non-GAAP earnings
per ADS
|
|
|
|
Basic
|
3.58
|
1.63
|
0.23
|
Diluted
|
3.45
|
1.59
|
0.23
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
Basic
|
1,372,863,321
|
1,387,254,551
|
1,387,254,551
|
Diluted
|
1,426,810,939
|
1,387,254,551
|
1,387,254,551
|
Diluted
(non-GAAP)
|
1,426,810,939
|
1,423,086,096
|
1,423,086,096
|
Weighted average
number of ADSs used in computation
|
|
|
|
Basic
|
137,286,332
|
138,725,455
|
138,725,455
|
Diluted
|
142,681,094
|
138,725,455
|
138,725,455
|
Diluted
(non-GAAP)
|
142,681,094
|
142,308,610
|
142,308,610
|
|
|
|
|
Other
comprehensive income (loss), net of tax of nil
|
|
|
|
Foreign currency
translation adjustments
|
116,194
|
132,450
|
19,077
|
Unrealized gains on
available-for-sale
securities, net
|
9,729
|
1,241
|
179
|
Reclassification
adjustments for gains included in net
income (loss)
|
(6,814)
|
(21,666)
|
(3,121)
|
Other
comprehensive income
|
119,109
|
112,025
|
16,135
|
Total
comprehensive income
|
293,746
|
55,318
|
7,968
|
Less: Total
comprehensive (loss) income attributable
to noncontrolling interests
|
(3,381)
|
26,814
|
3,862
|
Total
comprehensive income attributable to Cheetah
Mobile shareholders
|
297,127
|
28,504
|
4,106
|
|
|
|
|
(a) Share-based
compensation expenses
|
|
|
|
Cost of
revenues
|
1,523
|
1,490
|
215
|
Research and
development
|
142,777
|
148,211
|
21,347
|
Selling and
marketing
|
18,206
|
13,830
|
1,992
|
General and
administrative
|
153,234
|
142,618
|
20,541
|
Total
|
315,740
|
306,149
|
44,095
|
|
|
|
|
Notes:
|
|
|
|
(b) The above
condensed consolidated statements of comprehensive income have been
prepared as if the Kingsoft Japan had been
owned and operated by Cheetah Mobile throughout the periods
presented in accordance with ASC 805-50. Kingsoft Japan became
a
subsidiary of the Company on January 29, 2016.
|
CHEETAH MOBILE
INC.
|
Reconciliation of
GAAP and Non-GAAP Results
|
(Unaudited, in '000,
except for per share data and percentage)
|
|
|
For The Year Ended
December 31 2016
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
Non-GAAP
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
Result
($)
|
Revenues
|
4,564,650
|
|
|
|
|
|
|
|
4,564,650
|
|
|
|
657,446
|
Cost of
revenues
|
(1,543,817)
|
|
33.8%
|
|
1,490
|
|
0.0%
|
|
(1,542,327)
|
|
33.8%
|
|
(222,141)
|
Gross
profit
|
3,020,833
|
|
66.2%
|
|
1,490
|
|
0.0%
|
|
3,022,323
|
|
66.2%
|
|
435,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(905,854)
|
|
19.8%
|
|
148,211
|
|
3.2%
|
|
(757,643)
|
|
16.6%
|
|
(109,123)
|
Selling and
marketing
|
(1,650,581)
|
|
36.2%
|
|
13,830
|
|
0.3%
|
|
(1,636,751)
|
|
35.9%
|
|
(235,741)
|
General and
administrative
|
(561,834)
|
|
12.3%
|
|
142,618
|
|
3.1%
|
|
(419,216)
|
|
9.2%
|
|
(60,380)
|
Impairment of
goodwill and intangible assets
|
(2,889)
|
|
0.1%
|
|
-
|
|
0.0%
|
|
(2,889)
|
|
0.1%
|
|
(416)
|
Other operating
income
|
87,877
|
|
1.9%
|
|
-
|
|
0.0%
|
|
87,877
|
|
1.9%
|
|
12,657
|
Total operating
income and expenses
|
(3,033,281)
|
|
66.5%
|
|
304,659
|
|
6.7%
|
|
(2,728,622)
|
|
59.8%
|
|
(393,003)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(12,448)
|
|
0.3%
|
|
306,149
|
|
6.7%
|
|
293,701
|
|
6.4%
|
|
42,302
|
Net (loss) income
attributable to Cheetah Mobile shareholders
|
(80,525)
|
|
1.8%
|
|
306,149
|
|
6.7%
|
|
225,624
|
|
4.9%
|
|
32,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (losses)
earnings per ordinary share (RMB)
|
(0.06)
|
|
|
|
0.22
|
|
|
|
0.16
|
|
|
|
|
Diluted (losses)
earnings per ADS (RMB)
|
(0.58)
|
|
|
|
2.17
|
|
|
|
1.59
|
|
|
|
|
Diluted (losses)
earnings per ADS (USD)
|
(0.08)
|
|
|
|
0.31
|
|
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Year Ended
December 31 2015
|
|
|
|
GAAP
|
|
% of
Net
|
|
Share-based
|
|
% of
Net
|
|
Non-GAAP
|
|
% of
Net
|
|
|
|
Result
|
|
Revenues
|
|
Compensation
|
|
Revenues
|
|
Result
|
|
Revenues
|
|
|
Revenues
|
3,773,877
|
|
|
|
|
|
|
|
3,773,877
|
|
|
|
|
Cost of
revenues
|
(956,353)
|
|
25.3%
|
|
1,523
|
|
0.0%
|
|
(954,830)
|
|
25.3%
|
|
|
Gross
profit
|
2,817,524
|
|
74.7%
|
|
1,523
|
|
0.0%
|
|
2,819,047
|
|
74.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
(695,185)
|
|
18.4%
|
|
142,777
|
|
3.8%
|
|
(552,408)
|
|
14.6%
|
|
|
Selling and
marketing
|
(1,505,951)
|
|
39.9%
|
|
18,206
|
|
0.5%
|
|
(1,487,745)
|
|
39.4%
|
|
|
General and
administrative
|
(447,984)
|
|
11.9%
|
|
153,234
|
|
4.1%
|
|
(294,750)
|
|
7.8%
|
|
|
Impairment of
goodwill and intangible assets
|
(49,882)
|
|
1.3%
|
|
-
|
|
0.0%
|
|
(49,882)
|
|
1.3%
|
|
|
Other operating
income
|
98,376
|
|
2.6%
|
|
-
|
|
0.0%
|
|
98,376
|
|
2.6%
|
|
|
Total operating
income and expenses
|
(2,600,626)
|
|
68.9%
|
|
314,217
|
|
8.3%
|
|
(2,286,409)
|
|
60.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
216,898
|
|
5.7%
|
|
315,740
|
|
8.4%
|
|
532,638
|
|
14.1%
|
|
|
Net income
attributable to Cheetah Mobile shareholders
|
176,347
|
|
4.7%
|
|
315,740
|
|
8.4%
|
|
492,087
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
ordinary share (RMB)
|
0.12
|
|
|
|
0.22
|
|
|
|
0.34
|
|
|
|
|
Diluted earnings per
ADS (RMB)
|
1.24
|
|
|
|
2.21
|
|
|
|
3.45
|
|
|
|
|
CHEETAH MOBILE
INC.
|
Reconciliation
from Net Income Attributable to Cheetah Mobile Shareholders to
Adjusted EBITDA (Non-GAAP)
|
(Unaudited, in
'000)
|
|
|
For The Three
Months Ended
|
|
31-Dec-15
|
30-Sep-16
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
RMB
|
USD
|
Net income
attributable to Cheetah Mobile shareholders
|
56,681
|
445
|
58,775
|
8,464
|
Add:
|
|
|
|
|
Income tax
expense (benefits)
|
31,954
|
(7,873)
|
(9,278)
|
(1,336)
|
Interest
income,net
|
(2,815)
|
(727)
|
(954)
|
(137)
|
Depreciation and amortization
|
38,155
|
41,959
|
42,196
|
6,077
|
Net income
attributable to noncontrolling interests
|
23
|
7,716
|
9,254
|
1,333
|
Other
non-operating (income) expense, net
|
(6,053)
|
(33,402)
|
4,386
|
632
|
Share-based compensation
|
98,494
|
71,944
|
54,201
|
7,807
|
Adjusted
EBITDA
|
216,439
|
80,062
|
158,580
|
22,840
|
CHEETAH MOBILE
INC.
|
Reconciliation
from Net Income (Loss) Attributable to Cheetah Mobile Shareholders
to Adjusted EBITDA (Non-GAAP)
|
(Unaudited, in
'000)
|
|
|
For The Year Ended
December 31
|
|
31-Dec-15
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
USD
|
Net income (loss)
attributable to Cheetah Mobile shareholders
|
176,347
|
(80,525)
|
(11,598)
|
Add:
|
|
|
|
Income tax
expense (benefits)
|
63,740
|
(12,189)
|
(1,756)
|
Interest
income,net
|
(14,550)
|
(7,783)
|
(1,121)
|
Depreciation and amortization
|
146,836
|
163,357
|
23,528
|
Net (loss)
income attributable to noncontrolling interests
|
(1,710)
|
23,818
|
3,431
|
Other
non-operating (income) expense, net
|
(6,929)
|
64,231
|
9,251
|
Share-based compensation
|
315,740
|
306,149
|
44,095
|
Adjusted
EBITDA
|
679,474
|
457,058
|
65,830
|
Cheetah Mobile
Inc.
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited, in
'000)
|
|
|
For The Three
Months Ended
|
|
31-Dec-15
|
30-Sep-16
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
RMB
|
USD
|
PC
|
341,483
|
230,125
|
241,353
|
34,762
|
Mobile
|
808,063
|
898,201
|
1,033,319
|
148,829
|
Total
|
1,149,546
|
1,128,326
|
1,274,672
|
183,591
|
Cheetah Mobile
Inc.
|
Revenues Generated
from PC-based and Mobile-based Applications and
Services
|
(Unaudited, in
'000)
|
|
|
For The Year Ended
December 31
|
|
31-Dec-15
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
USD
|
PC
|
1,299,459
|
1,034,205
|
148,956
|
Mobile
|
2,474,418
|
3,530,445
|
508,490
|
Total
|
3,773,877
|
4,564,650
|
657,446
|
Cheetah Mobile
Inc.
|
Revenues Generated
from Domestic and Overseas Markets
|
(Unaudited, in
'000)
|
|
|
For The Three
Months Ended
|
|
31-Dec-15
|
30-Sep-16
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
RMB
|
USD
|
Domestic
|
515,671
|
408,440
|
442,089
|
63,674
|
Overseas
|
633,875
|
719,886
|
832,583
|
119,917
|
Total
|
1,149,546
|
1,128,326
|
1,274,672
|
183,591
|
Cheetah Mobile
Inc.
|
Revenues Generated
from Domestic and Overseas Markets
|
(Unaudited, in
'000)
|
|
|
For The Year Ended
December 31
|
|
31-Dec-15
|
31-Dec-16
|
31-Dec-16
|
|
RMB
|
RMB
|
USD
|
Domestic
revenues
|
1,840,289
|
1,817,874
|
261,828
|
Overseas
revenues
|
1,933,588
|
2,746,776
|
395,618
|
Total
|
3,773,877
|
4,564,650
|
657,446
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheetah-mobile-announces-fourth-quarter-and-fiscal-year-2016-unaudited-consolidated-financial-results-300426847.html
SOURCE Cheetah Mobile